Annual Report
2015
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DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
45
• Based on the satisfactory review and discussion above, the Audit Committee recommended to the Board
of Directors that the quarterly unaudited financial statements and audited financial statements to be
approved for announcement to Bursa Malaysia Securities;
• Reviewed related party transactions on a quarterly basis where commercial relationship existed between
each director, major shareholders and persons connected to Dayang Group and its subsidiaries, the Audit
Committee and the Board would ensure that such transactions were on normal commercial terms that
were not more favorable to the related parties than those generally available to the public;
• Reviewed, evaluated and discussed the internal audit plan, the internal audit reports prepared by the
Group Internal Audit (“GIA”) with the Head of GIA;
• Reviewed and evaluated with external auditors their audit plan, scope of work as well as the audit
procedures to be utilized;
• Reviewed the significant audit and accounting findings raised by the external auditors during statutory
audit of the Group;
• Conductedprivatemeetings with theexternal auditors to raiseanymatters in theabsenceof Management;
• Reviewed the external auditors’ fees and services; and
• Reviewed the Audit Committee Report and the Statement of Risk Management and Internal Control for
inclusion in the Annual Report prior to Board’s approval.
INTERNAL AUDIT FUNCTION
TheGroup has an independent in-house Internal Audit Department which reports directly to theAudit Committee.
The Committee shall oversee all internal audit functions and is authorized to commission investigations to be
conducted by internal audit as it deems fit. All proposals by management regarding the appointment, transfer
or dismissal of the internal auditor shall require the prior approval of the Committee.
During the financial year 2015, GIA carried out the following activities:
• Prepared and presented the 2015 Audit Plan for review and approval by the Audit Committee;
• Conducted 14 internal audit reviews on operational processes as per Audit Plan mainly on Warehouse,
Finance and Procurement Departments and 2 ad-hoc audits requested by the Management;
• Identified and recommended process improvements to existing system of internal control in the Company;
• Prepared audit reports and requested for Management’s responses on issues raised and incorporated the
updates into the final reports which were then circulated to the Audit Committee;
• Presented audit reports during Audit Committee meetings;
• Followed up on findings highlighted and updated the status to the Audit Committee; and
• Reviewed the annual Statement of Risk Management and Internal Control and the Audit Committee
Report before submitting to Audit Committee for approval.
The total cost incurred for the Group Internal Audit function in respect of the financial year ended 31 December
2015 amounted to approximately RM230,000.00.
Audit
Committee Report
(cont’d)
